Former Bac Giang and Bac Ninh provinces were among the earliest localities in Vietnam to attract investment in these strategic industries and expected to reach even greater heights following their recent administrative merger.

Vuong Quoc Tuan, alternate member of the Party Central Committee and Chairman of the provincial People's Committee, visits Micro Commercial Components Vietnam (M.C.C) at the Yen Phong II-C Industrial Park.

Recognising the importance and opportunities of the semiconductor and AI sectors early on, Bac Giang and Bac Ninh – key industrial hubs of both the region and the country – actively promoted investment and development in these fields.

Bac Giang recently emerged as a top destination for foreign direct investment (FDI), especially in the semiconductor industry. The province adopted an open policy guided by the “2 lows, 3 highs” principle: low land use and low labour needs, but high added value, high capital investment, and high technology.

This attracted several global investors in the semiconductor and AI production chains to set up operations in the province.

A turning point came in 2021 when Hana Micron Vina (the Republic of Korea), the first company in Vietnam to manufacture semiconductors for the global supply chain, invested 643 million USD in Bac Giang.

Then, other companies followed, including SiFlex Vietnam from the RoK with 299 million USD and Synergie Cad Vietnam from France, with 21.2 million USD.

In 2024, the combined production value of these three companies reached 23 trillion VND (880.33 million USD), and their annual growth is projected at 30% through 2030.

Bac Giang’s favorable investment climate continued to draw major semiconductor and AI manufacturers from around the world.

The former Bac Ninh was already a leading centre for electronics manufacturing in Vietnam, home to multinational tech giants such as Samsung, Canon, Foxconn, Goertek, and Luxshare.

This success laid the groundwork for the province’s bold move into the higher-value semiconductor and AI industries.

From 2022, Bac Ninh prioritised semiconductors as a strategic pillar of its high-tech development roadmap.

In late 2023, Amkor Technology, a US– RoK joint venture, committed to a 1.6 billion USD investment by 2035 in a semiconductor material testing, assembly, and packaging project, aiming to become the company’s largest chip manufacturing hub globally.

Thanks to attractive policies, Bac Ninh continued to draw interest from major global players. For example, Chinese firm Victory Giant Technology has invested 800 million USD in a project focused on research, development, and manufacturing of high-precision circuit boards.

Meanwhile, Micro Commercial Components Vietnam (Singapore) has built a semiconductor assembly and manufacturing facility in the locality, with the ambition to become one of the top 10 global players.

According to economic experts, the merger of Bac Giang and Bac Ninh has created a "soaring eagle" of Vietnam’s industrial landscape, with clearer ambitions to become the country’s leading semiconductor and AI production centre and potentially a major player in Southeast Asia.

Beyond just chip packaging and testing, the new Bac Ninh province aims to develop a comprehensive semiconductor ecosystem – from integrated circuit design, supporting equipment manufacturing, and new materials research, to software development and AI applications in chip production.

This strategy is supported by strong partnerships and investment commitments from both domestic and international corporations.

Electronic device manufacturing at Hosiden Vina Co., Ltd. in the Quang Chau Industrial Park.

With its strategic location in the Hanoi–Hai Phong–Quang Ninh key economic triangle and serving as the northeastern gateway to the capital, the newly merged Bac Ninh enjoys top-tier economic scale and growth among Vietnamese localities.

The local semiconductor ecosystem is becoming more comprehensive with substantial development potential.

Infrastructure development continues to be prioritised, with enhanced connectivity to major northern industrial zones via highways such as Hanoi–Bac Giang–Lang Son, National Road 1A, and Hanoi’s Ring Road 4.

Key projects like Gia Binh Airport in former Bac Ninh and logistics centres in former Bac Giang are poised to serve as critical launchpads.

Clearly, with valuable experience in attracting investment, especially FDI, and a proactive approach to high-tech industrial trends, Bac Ninh’s semiconductor and AI industries are well-positioned for rapid acceleration.

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